GSA's $42.5M contract for Air Force HMMS project support awarded to IHS Global Inc

Contract Overview

Contract Amount: $42,538,008 ($42.5M)

Contractor: IHS Global Inc

Awarding Agency: General Services Administration

Start Date: 2007-09-27

End Date: 2012-03-28

Contract Duration: 1,644 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROJECT SUPPORT FOR US AIR FORCE HMMS

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056, UNITED STATES OF AMERICA

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $42.5 million to IHS GLOBAL INC for work described as: PROJECT SUPPORT FOR US AIR FORCE HMMS Key points: 1. Contract value represents a significant investment in Air Force mission support systems. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 4 years) indicates a long-term need for these services. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The contract falls within the IT sector, specifically supporting software publishers. 6. The award to a single contractor, IHS Global Inc., warrants scrutiny for potential performance risks.

Value Assessment

Rating: fair

The total contract value of $42.5 million over approximately 4.5 years averages to about $9.4 million annually. Without specific benchmarks for similar Air Force HMMS project support, it's difficult to definitively assess value for money. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not meticulously monitored and controlled. Benchmarking against industry standards for IT project support services would be necessary for a more precise evaluation of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. While the number of bidders is not specified, this procurement method generally fosters price discovery and encourages competitive pricing. The GSA's use of this method suggests an effort to obtain the best value through a broad solicitation.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing by allowing a wide range of potential contractors to bid on the work.

Public Impact

The primary beneficiary is the U.S. Air Force, which receives essential project support for its HMMS systems. Services delivered likely include IT project management, software development support, and system maintenance. The geographic impact is primarily within the Air Force's operational domains, potentially worldwide. Workforce implications may include the need for specialized IT professionals and project managers, both within the contractor's organization and potentially within the Air Force to oversee the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost escalation if not managed rigorously.
Award to a single contractor (IHS Global Inc.) could concentrate risk and limit recourse in case of underperformance.
Lack of specific performance metrics or KPIs in the provided data makes assessing contractor effectiveness challenging.

Positive Signals

Awarded through full and open competition, suggesting a competitive process aimed at best value.
The contract duration indicates a sustained need and potentially a stable, long-term relationship for critical support.
The General Services Administration (GSA) is a reputable agency for managing federal IT contracts.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically supporting software publishers and related project management functions. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by agencies like the Department of Defense or other civilian agencies for similar mission-critical systems.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses, and large businesses were likely the primary bidders and awardees. Consequently, there may be limited direct subcontracting opportunities for small businesses unless IHS Global Inc. voluntarily includes them in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the U.S. Air Force program office. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Air Force IT Modernization Programs
GSA IT Schedule Contracts
Defense Information Systems Agency (DISA) Support Contracts
Federal Civilian IT Services Procurement

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk associated with awarding a large contract to a single vendor.
Lack of specific performance metrics in summary data.
Limited visibility into the number of bidders under full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $42.5 million to IHS GLOBAL INC. PROJECT SUPPORT FOR US AIR FORCE HMMS

Who is the contractor on this award?

The obligated recipient is IHS GLOBAL INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2007-09-27. End: 2012-03-28.

What is the track record of IHS Global Inc. in performing similar IT project support contracts for the U.S. Air Force or other federal agencies?

Assessing the track record of IHS Global Inc. requires a deep dive into their past performance on federal contracts. This would involve reviewing contract databases (like FPDS) for previous awards, performance evaluations (Contract Performance Assessment Reporting System - CPARS), and any documented issues or successes. Specifically for Air Force HMMS project support, understanding their experience with similar mission-critical systems, their ability to manage Time and Materials contracts effectively, and their history of meeting deadlines and budget constraints would be crucial. A positive track record would indicate a lower risk of performance issues, while a history of problems could signal potential challenges in delivering the required services for this $42.5 million contract.

How does the average annual cost of this contract ($9.4 million) compare to similar IT project support contracts for defense agencies?

To benchmark the average annual cost of $9.4 million, we would need to compare it against similar contracts awarded by the Department of Defense or other federal agencies for IT project support, particularly those involving mission-critical systems. Key comparison points would include the scope of work, the complexity of the systems supported, the duration of the contracts, and the pricing structures (e.g., T&M vs. Firm-Fixed-Price). If comparable contracts for similar services are significantly lower or higher, it would suggest potential overpricing or under-resourcing, respectively. Without specific comparable data, it's difficult to definitively state whether $9.4 million annually represents excellent, fair, or questionable value for this specific Air Force HMMS support.

What are the specific risks associated with the Time and Materials (T&M) pricing structure for this contract, and how are they mitigated?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. This can lead to unpredictable expenditures if the contractor's efficiency is low or if the scope of work expands without adequate controls. Mitigation strategies typically involve establishing clear labor categories with defined rates, setting ceiling prices, implementing robust monitoring and reporting mechanisms to track hours and expenses, and requiring detailed justifications for all work performed. The Air Force and GSA would need stringent oversight to ensure that T&M costs remain within reasonable bounds and that the contractor is incentivized for efficiency.

Given the 'full and open competition' award, how many bids were received, and what does this imply about the level of competition and potential savings?

While the award was made under 'full and open competition,' the exact number of bids received is not provided in the summary data. A high number of bids typically indicates robust competition, which generally leads to more competitive pricing and greater potential savings for the government. Conversely, a low number of bids, even under full and open competition, might suggest limited market interest, potential barriers to entry for some firms, or a highly specialized requirement. Understanding the number of bidders is crucial for assessing whether the competitive process effectively drove down costs and ensured the best value was obtained for the taxpayer.

What are the performance metrics and Key Performance Indicators (KPIs) used to evaluate IHS Global Inc.'s success on this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) used to evaluate IHS Global Inc.'s success on this contract. In a typical federal contract, especially one for critical IT project support, KPIs would be established to measure aspects such as system uptime, response times for issue resolution, project completion rates, adherence to security protocols, and user satisfaction. The absence of this information makes it difficult to objectively assess the contractor's performance and the overall effectiveness of the services delivered. A thorough review of the contract's statement of work and performance work statement would be necessary to identify these metrics.

How does the $42.5 million total contract value compare to historical spending on Air Force HMMS project support over similar periods?

To assess historical spending patterns, one would need to examine previous contracts awarded for Air Force HMMS project support. This analysis would involve looking at the total value, duration, and scope of prior contracts to identify trends in spending. For instance, if historical spending for similar support over comparable periods was significantly lower, it might raise questions about the current contract's value or scope. Conversely, if spending has increased due to inflation, system complexity, or expanded requirements, the current value might be justified. Comparing the current $42.5 million award against historical data provides essential context for evaluating its financial reasonableness.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: IHS Inc. (UEI: 198224532)

Address: 15 INVERNESS WAY E, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,530,919

Exercised Options: $42,538,008

Current Obligation: $42,538,008

Parent Contract

Parent Award PIID: GS35F0552T

IDV Type: FSS

Timeline